Lincoln Electric Holdings, Inc. · NASDAQ:LECO
Lincoln Electric — Q3 2025 Earnings Presentation
18 slides from Lincoln Electric's earnings presentation, Oct 30, 2025
Slide 1: Q3 2025 Earnings
October 30, 2025 LINCOLN ELECTRIC HOLDINGS, INC. Q3 2025 Earnings
Slide 2: Safe Harbor and Regulation G Disclosures
Safe Harbor and Regulation G Disclosures Forward-Looking Statements: Non-GAAP Measures: Statements made during this presentation which are not Our management uses non-GAAP financial measures in historical facts may be considered forward-looking statements. assessing and evaluating the Company’s perf
Slide 3: Third Quarter 2025 Highlights
Third Quarter 2025 $1.06B 22.2% Highlights: Net Sales performance Adjusted ROIC performance1 +8% vs. prior year; Organic sales +6% +80 bps vs. prior year Diligent cost management, mix, and $8M in incremental permanent 17.4% $237M savings mitigate dynamic operating conditions Adjusted Operating Incom
Slide 4: Q3 organic sales increase on prior pricing actions and consumable volume growth
Q3 organic sales increase on prior pricing actions and consumable volume growth Q3 Organic sales by product area Q3 global end sector performance1 Led by price and consumable 3 of 5 end markets flat-to-up, led by volumes flat-to-up in all 3 segments price and North American demand Consumables increa
Slide 5: Income Statement Highlights Q3-2025
Income Statement Highlights Q3-2025 ($ in Millions) Q3 2025 Q3 2024 % YoY Change Favorable / (Unfavorable) Net Sales $ 1,061.2 $ 983.8 7.9% Gross Profit $ 389.3 $ 352.1 10.6% Gross Profit Margin 36.7% 35.8% 90 bps SG&A as % of net sales 19.5% 18.9% (60) bps Adjusted Operating Income $ 184.6 $ 169.8
Slide 6: Americas Welding Segment
Americas Welding Segment % YoY ($ in Millions) Q3 2025 Q3 2024 Change Organic sales increase on Net Sales $ 691.8 $ 637.0 8.6% price and modest volume growth in consumables and equipment; offset by Adjusted EBIT $ 131.6 $ 125.5 4.9% automation. Adjusted EBIT Margin2 18.2% 18.8% (60) bps Margin refle
Slide 7: International Welding Segment
International Welding Segment % YoY ($ in Millions) Q3 2025 Q3 2024 Change Organic sales decline narrows on a favorable Net Sales $ 219.6 $ 216.2 1.6% prior year comparison. Adjusted EBIT $ 25.8 $ 20.1 28.5% Acquisition benefit from Alloy Steel. Adjusted EBIT Margin2 11.3% 9.0% +230 bps Margin growt
Slide 8: The Harris Products Group
The Harris Products Group % YoY ($ in Millions) Q3 2025 Q3 2024 Change Organic sales higher on price and volume growth Net Sales $ 149.8 $ 130.5 14.8% in HVAC and HPG’s Q2 retail channel expansion. Adjusted EBIT $ 28.1 $ 22.0 27.9% Price reflects changes in metal costs and price Adjusted EBIT Margin
Slide 9: Cash Flow From Operations & Working Capital Metrics
Cash Flow From Operations & Working Capital Metrics Cash Flow from Operations Average Operating Working ($ in Millions) Capital to Net Sales Ratio $566 $503 19.1% 18.6% 119% cash conversion1 16.9% first nine months-2025 $237 $199 Q3-24 Q3-25 YTD YTD Sept 30, 2024 Dec 31, 2024 Sept 30, 2025 Sept Sept
Slide 10: Capital Allocation
Capital Allocation1 ($ in Millions) Q3 Capital Allocation & Returns $671 $634 211 • Growth: $136 million 286 • Return to Shareholders: $94 million 122 • Return on Invested Capital2: 22.2% 126 $226 $230 253 Capital Allocation Strategy 50 53 40 42 137 100 104 Prioritized uses of cash: 85 84 36 32 • Gr
Slide 11: Full Year 2025 Assumptions
Full Year 2025 Assumptions Maintaining most operating assumptions - updating interest expense and increasing cash conversion Assumptions Risks LSD% organic sales growth Net impact of trade & regulatory policies (price partially offset by volumes) Economic and geopolitical headwinds Neutral price/cos
Slide 12: Contact
Contact: Amanda Butler Vice President, Investor Relations & Communications Amanda_Butler@lincolnelectric.com 216.383.2534 12 12
Slide 13: Non-GAAP Information
Non-GAAP Information Adjusted operating income, Adjusted net income, Adjusted EBIT, EBITDA, Adjusted EBITDA, Adjusted effective tax rate, Adjusted diluted earnings per share, Adjusted EPS, Organic sales, Cash conversion, and Adjusted Return on invested capital are non-GAAP financial measures. Manage
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures: Reconciliation of Operating Income, Net Income, Effective Tax Rate, and EPS to Non-GAAP Adjusted Operating Income, Adjusted Net Income, Adjusted Effective Tax Rate, and Adjusted EPS (In thousands, except per share amounts) (Unaudited) 14 Pleas
Slide 15: Non-GAAP Financial Measures (continued)
Non-GAAP Financial 1) Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate and Measures adjusted diluted EPS are non-GAAP financial measures. Refer to Non-GAAP Information section. 2) 2025 and 2024 net charges primarily relate to rationalization plans within all
Slide 16: Adjusted Return on Invested Capital (ROIC)
Non-GAAP Financial Measures Adjusted Return on Invested Capital (ROIC) (In thousands) (Unaudited) 1) Adjusted net operating profit after taxes and Adjusted ROIC are non-GAAP financial measures. Refer to Non-GAAP Information section. 2) Includes the net tax impact of Special items recorded during the
Slide 17: Segment EBIT
Segment EBIT EBIT and Adjusted EBIT Reconciliation – Three Months Ended September 30, 2025 (In thousands) (Unaudited) 17 Please see the following slide for corresponding footnotes
Slide 18: Non-GAAP Financial Measures (continued)
Non-GAAP Financial 1) EBIT is defined as Operating income plus Other income (expense). Measures 2) The primary profit measure used by management to assess segment performance is adjusted EBIT. EBIT for each operating segment is adjusted for special items to derive adjusted EBIT. (continued) 3) Speci
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